DislikedNice of you to summarize. Quick question...what would be your thoughts on the min pips between the 60 & 200ma's before you would feel good about entering a trade? And you also require the lag2 (.85) to also drop am I right? Would there be any instances that you would enter solely on the Lag1?
Thanks in advance for your comments.
Hopefully tomorrow's hunt will go better!
Pip HunterIgnored
A lot of the time the candles aren't inside the EMA's so you don't have to worry about it at all. But I'd definitely say if it's inside the EMA's and they're 20 pips apart, I won't touch it.
I enter based on lag 1 but only if lag 2 is doing 1 of 2 things:
1) Lag 2 is completely flat on the same side as Lag 1. For example, if Lag 1 is flat against the bottom and pointing up past 0.15, Lag 2 needs to be flat against the bottom too.
2) Lag 2 was flat but is now pointing in the same direction as Lag 1. For example, if Lag 1 is flat against the bottom and pointing up past 0.15, Lag 2 can be doing the same thing. In fact, this is preferable and suggests a big move. Usually by the time lag 2 starts pointing Lag 1 has already flat lined against the top though.
So, to illustrate:
1) Lag 1 looks like (____/) lag 2 looks like (_____)
2) Lag 1 looks like (____/) lag 2 looks like (____/)